Latest announcement of electricity and gas price cuts spark hopes of energy price war

Bord Gáis has announced energy price cuts for customers, sparking hopes of a price war between energy providers in the country.

The company is to cut electricity unit rates by 10%, gas unit rates by 9.5% and standing charges by 8%.

The price drop will come into effect on 29 February and will be applied to  600,000 domestic customers of the company.

The reduced charges are expected to save €190 a year on the average annual bill. It is estimated that gas customers will save €141 a year.

This is the second price reduction announcement in recent months by the supplier. In November it shaved 15.5% off the unit rates for both electricity and gas, as well as standing charges.

The company claims today’s development will mean Bord Gáis Energy customers will have the lowest standard variable dual fuel prices in Ireland.

"These reductions combined with the November price drop will result in dual fuel customers saving almost €1,000 per annum on their bills," said Bord Gáis Energy Managing Director Dave Kirwan.

"Despite some volatility remaining, wholesale energy prices have continued to stabilise, and our careful hedging strategy has meant we can pass on today’s savings," Mr Kirwan said.

On Monday, Electric Ireland said it is lowering electricity prices by 8pc from March 1, with the standing charge going down by the same percentage.

Its gas prices will drop by 7pc, with the gas standing charge falling by the same percentage. This means residential customers of Electric Ireland are expected to save an average of €153 this year.